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…giving more thought to your life and money!

How Reasoning Affects Our Financial Lives

Written by Tokunbo Osunbayo
The state of a man’s mind plays a huge role in how his or her life turns out. Imagine yourself having the power to analyse minds, I’m not talking about reading minds but actually getting into how a person reasons.
Our ability or inability to reason effectively has gotten in the way of many lives when it comes to money. But before we go further, let’s take a look at the meaning of reasoning.
What is reasoning? After much research, I came across a suitable definition that would work well within our context. ‘It is the means to improve knowledge and make better decisions.’ This is an appropriate explanation when it comes to your financial life. How you reason affects your money decisions and your financial outcomes.
You see our reasoning has a lot to do with the way our minds function. And the way our minds function has much to do with the way we handle our money and finances generally.
I’ll give you this example to further buttress my point,
Jerry is the best mechanic in his local community and everyone flocks to him for his services, unfortunately Jerry had lived in his community all his life and his clients see him as a friend more than their mechanic. This had caused them to underpay him for his services whenever they visited his garage. Even some had gone as far as not paying him, with their promise to pay him later.  This had begun to frustrate Jerry’s wife as there was never enough money coming in from his business to cover the increasing family expenses.  Jerry and his wife had previously agreed that she would be a stay at home mum, giving her the opportunity to bring up their kids the way they wanted. They had decide to have three children. Jerry believed a wife should be a homemaker and not a career woman. His wife was happy to go along with Jerry’s view but they now have their three kids and the family’s finances were being stretched to breaking point. Jerry was no longer able to cover the monthly expenses of his household. Would you say Jerry’s viewpoint is still workable or is his reasoning getting in the way of what is practical and obvious?
Your response to this scenario would be based on YOUR reasoning. Some might say Jerry is right to ask his wife to stay home. Others might say Jerry should do something about his business, women who work from home would say the wife should start a home business, the home-schooler’s would definitely suggest she home school the kids. This is all based on the different ways we reason.
You might even have something completely distinct to what has been said above. But are you beginning to see how our reasoning affects our finances? If Jerry does not do something quickly any number of things could happen. His business could close down completely meaning no income. His wife would certainly become more frustrated and unhappy, this would definitely affect the balance of the home. They may well begin to quarrel over the family finances which would lead to further strains, it can even result in separation and divorce. Are you beginning to get the picture of where things could go and how homes fall apart?
Is your reasoning getting in the way of your finances? Would knowledge help you make the right financial decisions or do you think your reasoning has been helpful so far? I would like to hear your views on how your reasoning has contributed to where you are financially, whether it is where you had originally planned to be or maybe you have gone completely off course. But do take this to heart; your reasoning is definitely affecting your finances, whether good or bad. So take ACTION TODAY by sitting down to check how your reasoning is working in your financial life. And like I always say, only you can give more thought to your life and money?
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